User Account

All Pages

Calculate the net present value of the proposed project

Assignment Help Accounting Basics
Reference no: EM132441389

Question - Paragas, Inc., is considering the purchase of a machine that would cost $370,000 and would last for 8 years. At the end of 8 years, the machine would have a salvage value of $52,000. The machine would reduce labor and other costs by $96,000 per year. Additional working capital of $4,000 would be needed immediately. All of this working capital would be recovered at the end of the life of the machine. The company requires a minimum pretax return of 19% on all investment projects. (Ignore income taxes.)

Calculate the net present value of the proposed project?

A. $9,584

B. $78,530

C. $22,532

D. $19,528

Reference no: EM132441389

Questions Cloud

Determine the number of shares outstanding : A corporation has 55,181 shares of $22 par value stock outstanding. If the corporation issues a 5-for-1 stock split, determine the number of shares outstanding
Vital resource for the human body : Which properties of water make it a vital resource for the human body? In agricultural areas, farmers pay close attention to the weather forecast.
Define what is the object : What are its origins? What might we not know about it?What surprising or interesting things can you find out about object that demonstrate its "extraordinary
Polymerase in existence to do the transcribing : How would the first polymerase have been transcribed (and then translated) if there was not yet a polymerase in existence to do the transcribing?
Calculate the net present value of the proposed project : Paragas, Inc., is considering the purchase of a machine that would cost $370,000. Calculate the net present value of the proposed project
What is the power of the low objective lens : A microscope has a field diameter of 2,000 micrometers under a total low power magnification of 100x. This microscope has a 10x power ocular.
What is the difference between solvent and solute : 1. What is the difference between solvent and solute? Please give examples
What was the standard rate for August : Information on Engstom's direct labor costs for the month of August is as follows: Actual rate $7.50. What was the standard rate for August
Describe a simple but common physical action : Describe a simple but common physical action of every day life by listing the movement terms, joints and planes involved in 2 to 3 components of the action.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd